SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
Litigation Release No. 15456 August 21, 1997
SECURITIES AND EXCHANGE COMMISSION v. ROBERT J. YOUNG, WILLIAM DOUGLAS
MORGAN, RUSSELL LOZIS AND BETH LOMBARDO, 3:95 CV 2106 (AHN) (D. CONN.)
The Commission announced today that on July 15, 1997, the U.S.
District Court for the District of Connecticut entered final consent
judgments against Defendants Russell Lozis ("Lozis"), 49, and Beth Lombardo
("Lombardo"), 42, the last two remaining defendants in this civil
injunctive action alleging unlawful insider trading. The Complaint alleges
that Lozis and Lombardo, a married couple residing in East Hampton,
Connecticut, among others, purchased stock in MedImmune, Inc. ("MedImmune")
while in possession of material, nonpublic information concerning a
proposed collaboration agreement between MedImmune and Merck, Inc. to
develop an immunotherapy and vaccine for the virus that causes AIDS using
MedImmune's monoclonal antibody technology.
Lozis and Lombardo, without admitting or denying the allegations of
the Complaint, each consented to the entry of a final judgment permanently
enjoining them from future violations of Section 10(b) of the Securities
Exchange Act of 1934 ("Exchange Act") and Rule 10b-5. Lozis agreed to pay
a total of $11,807.26 in disgorgement and prejudgment interest; however,
payment of such amount was waived, and no civil penalty imposed, based upon
his demonstrated inability to pay. Lombardo consented to pay a total of
$2,565.03 in disgorgement and prejudgment interest.
Final consent judgments previously were entered against Defendants
Robert J. Young ("Young") and William Douglas Morgan ("Morgan"). Young and
Morgan, without admitting or denying the allegations of the Complaint, each
consented to the entry of a final judgment permanently enjoining them from
future violations of Section 10(b) of the Exchange Act and Rule 10b-5.
Young agreed to pay a total of $50,533.00 in disgorgement and prejudgment
interest; however, payment of such amount was waived, and no civil penalty
imposed, based upon his demonstrated inability to pay. Morgan agreed to
pay a total of $137,997.13 in disgorgement, prejudgment interest and civil
penalties.
For additional information, see Litigation Release Nos. 14661
(September 29, 1995) and 14740 (November 28, 1995).
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